Penelope has a loan payment of $700 due today and another $650 due in 4 months. Unfortunately, Penelope does not have the money to make those payments, but Penelope will have enough money in 7 months. What single payment in 7 months will satisfy these loan payments? Assume that the interest rate is 9% compounded monthly.

Answer rating: 100% (QA)

To solve this problem we can use the concept of the present value of a future payment The idea is to ... View the full answer